Conservative balanced

Aims:

To maximise long-term investment returns while maintaining a balance of risk and return.

To outperform an average annual return of CPI plus 2.5% pa (3.0% pa in pension) over rolling ten-year periods.

Risk profile:

Invests in a mix of growth and defensive assets to achieve higher returns, while reducing short-term risks. This option is likely to produce a negative return in 2 to 3 years in every 20 years.

Risk Level:

Medium to high

Investor profile:

Will suit investors looking for moderate returns over the medium to long-term but who are prepared to accept some fluctuations in investment performance over shorter periods.

Investment strategy

Minimum suggested time frame for holding the investment is 3 years. The Trustee may adjust the asset mix or vary the investment strategy from time to time. This could include varying the mix between growth assets and defensive assets.

Growth Assets

Benchmark %

Permitted range %

Australian shares

19

10-45

Overseas shares

19

10-30

Property

11

0-20

Alternative growth*

6

0-15

Total

55%

45-65%

Defensive Assets

Benchmark %

Permitted range %

Fixed interest

20

10-50

Enhanced cash

15

0-20

Cash

5

0-30

Alternative income

5

0-20

Total

45%

35-55%

* Alternative Growth may include private equity, credit and infrastructure